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Woodbridge Group of Companies— Investment Fraud

Woodbridge Group of Companies Currently the Focus of an SEC Action Seeking Certain Corporate Records and Reportedly Inquiring whether the Mortgage Investment Fund Allegedly Defrauded Investors

Woodbridge Group of Companies is currently the focus of an SEC action seeking certain corporate records and the SEC is reportedly probing whether Woodbridge defrauded investors, according to Reports from the SEC under review by attorneys Jason kane and James Booker.

Woodbridge Mortgage Investment Fund investors who believe they may have lost money are encouraged to contact attorneys Jason kane or James Booker with any useful information or for a free, no obligation discussion about their options.

Starting in September 2016, Woodbridge came under investigation by the SEC in connection with alleged securities law violations, and the Company will purportedly continue to cooperate fully and work with the SEC and state regulators toward bringing forth a resolution of any investigations, according to the aforementioned Reports.

The SEC has been investigating the Woodbridge Group of Companies, which has allegedly raised over $1 billion from investors, in order to determine whether the company has been operating as a fraud, according to court documents connected to the case.

What is more, the SEC sent subpoenas to 235 LLCs it understands are allegedly connected to the Woodbridge Group of Companies, and investigating purportedly potentially improper sale of securities, according to SEC Reports.

The SEC is looking for information and documents regarding payments the LLCs made to Woodbridge, the names of the LLC’s managers or staff members, as well as information regarding financial institutions of the LLCs, the SEC notes.

SEC Filings have made the following statements regarding the case:

“The SEC’s application alleges that, although the LLCs were required to produce these documents by August 30 and 31, to date, they have failed to produce any documents… The SEC’s application seeks an order from the federal district court compelling respondents to comply with the SEC’s subpoenas.”

Woodbridge has Allegedly Undertaken a Restructuring Effort of its Management Team, Filed for Chapter 11 Bankruptcy, and Received Inquiries from Approximately 25 State Regulators about its Securities Sales

On December 4, 2017, Woodbridge Group of Companies also declared bankruptcy citing ongoing litigation and regulatory compliance costs as factors in the bankruptcy, according to the aforementioned Reports under review by attorneys Jason kane and James Booker.

Documents filed in the U.S. Bankruptcy Court in Delaware allege that Woodbridge owes about $750 million to an estimated 8,998 note-holders, and that Woodbridge allegedly operates through a complex network of more than 250 affiliated companies owned by RS Protection Trust, of which Shapiro is the trustee and his family members the sole beneficiaries, the Reports note.

The Company reportedly expects to exit bankruptcy as expeditiously as possible, according to reports from California.

What is more, Woodbridge said that the entity also has thus far received inquiries from about 25 state regulators about its securities sales and the alleged offer and sale of unregistered securities by unregistered agents, according to Reports from California.

The SEC investigation has set off a tidal wave of events. For example, Woodbridge has undertaken a restructuring effort of its management team, and Woodbridge’s President, Manager and Chief Executive Officer of Woodbridge Group of Companies, Robert Shapiro, reportedly resigned effective December 1, 2017, the Reports note.

Furthermore, Lawrence Perkins, of SierraConstellation Partners, has been appointed Chief Restructuring Officer, and Marc Beilinson, of Beilinson Advisory Group, has been appointed as Independent Manager, the Reports state.

Woodbridge states that its wealth management group, Woodbridge Wealth, sells three types of investments: first position commercial mortgages with an annual yield of 5%, secondary market annuities with “above average, risk adjusted yields”, and a commercial bridge loan fund that potentially returns 6%. According to a scan of BrokerCheck, there is no broker-dealer named Woodbridge Wealth registered with the Financial Industry Regulatory Authority Inc.

No allegations of misconduct are being made against Woodbridge in this blog.

The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating sales practices involving the Woodbridge Mortgage Investment Fund securities. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Woodbridge investors who believe they lost money as a result of their investments in Woodbridge may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason kane or James Booker, for a free no-obligation evaluation of their recovery options, at 585-310-5140 or via e-mail at jkane@prwlegal.com or jbooker@prwlegal.com.

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